{"data":{"id":"us-nm/46-3a-503","jurisdiction":"us-nm","citation":"46-3A-503","heading":"Transfers from income to principal for depreciation.","body":"(a) As used in this section, \"depreciation\" means a reduction in value due to wear, tear, decay, corrosion or gradual obsolescence of a fixed asset having a useful life of more than one year.\n(b) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation:\n(1) of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;\n(2) during the administration of a decedent's estate; or\n(3) under this section if the trustee is accounting under Section 403 [46-3A-403 NMSA 1978] for the business or activity in which the asset is used.\n(c) An amount transferred to principal need not be held as a separate fund.","path":["Chapter 46 - Fiduciaries and Trusts","ARTICLE 3A Uniform Principal and Income"],"source_url":"https://nmonesource.com/nmos/nmsa-unanno/en/item/18547/index.do","current_through":"2024-04-26","vintage":"","retrieved_at":"2026-09-03T15:02:19Z","sha256":"66b9043fe4bd1af0ef66917ec6a7412df651cdc801883637149201f3f4404fa6","source_id":"us-nm","stale":false,"prev":"us-nm/46-3a-502","next":"us-nm/46-3a-504"},"notice":"GroundRules: Original legal text. Not legal advice."}